Asia proves Rio profitable
Rio Tinto, the world's second largest diversified mining company, reported robust profits on the back of strong Asian demand for steel-making raw materials like
iron ore and
coking coal.
Steel hungry nations like
China,
Japan and
India helped Rio post an 87% rise in profits to $2.8 billion. The news will likely get even better for Rio in 2005, as raw material prices, especially
iron ore, are expected to soar well beyond 2004 levels.
Right now Rio and many other mining companies are keeping a close eye on
Brazil's largest
iron ore producer, CVRD. The company had been suggesting that it would raise its
iron ore prices by nearly 90% in 2005. If CVRD carries through on its promise, it is a safe bet that other mining companies will follow suit.
Rio Tinto produces aluminum, copper, diamonds, coal, uranium, gold, industrial minerals and
iron ore. It is a global company with a significant presence in
Australia and
North America.